NORD/LB in leading role to finance one of Europe's biggest onshore wind projects
NORD/LB Norddeutsche Landesbank successfully financed the 650 MW Markbygden project located in Norrbottens, North Sweden. The project will be the largest single onshore wind farm in Europe with a total investment of approximately EUR 800m. The project financing is close of EUR 500m and has been structured as a combination of commercial debt and development finance. NORD/LB acted as Mandated Lead Arranger and ECA advisor to the sponsors helping to structure the tranche covered by Euler Hermes. The total debt package was provided by the European Investment Bank, NORD/LB, KfW Ipex and HSH Nordbank. Euler Hermes is providing political and commercial risk insurance.
GE and Macquarie Group have partnered to sponsor one of Europe's biggest onshore wind project to date. GE Renewable Energy will provide 179 wind turbines to the Markbygden project. The project will sell power via a 19-year fixed offtake contract with Norsk Hydro, which is understood to be the largest corporate wind PPA in the world.
NORD/LB's involvement and leading role in the financing of this innovative and landmark transaction underlines the banks high competence in struc-turing and financing renewable energy in many international markets. In 2017 NORD/LB, has continued to finance green projects in all four continents with strong links into the German home market.
Heiko Ludwig, Head of Energy Europe, NORD/LB: "The project is a landmark transaction with many innovative aspects in a low cost environment and a unique financing approach efficiently combining different financing sources contributing to the fight against climate change."
With total assets of EUR 169 billion, NORD/LB Norddeutsche Landesbank is one of Germany’s leading merchant banks. Its core business segments include structured finance in the energy and infrastructure sector, ship and aircraft finance, corporate client business, commercial real estate finance, capital market business and private and commercial client business. The Bank has its head office in Hanover, Braunschweig and Magdeburg. In Bremen and Oldenburg, under the brand BLB, its focus is on business with North German corporate customers, domestic wind energy financing and private banking. NORD/LB also has branches in Düsseldorf, Hamburg, Munich, Schwerin and Stuttgart. Outside Germany, NORD/LB is active in Luxembourg with a covered bond bank (NORD/LB Covered Bond Bank) and also has offices in London, New York, Singapore and Shanghai.
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